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Gold markets continue to go sideways, and that’s a good sign as it looks like we are trying to find some type of catalyst to either go higher or pull back a bit. I believe that the market continues to be very skittish, but I do like Gold longer-term. I think that everybody should have a little bit of gold in their portfolio, and I think that the next target is probably the $1250 level. Pullbacks at this point should be supported down to at least the $1200 level, unless of course we get some type of massive surge in the greenback, but right now I think we are at extremes and therefore it makes sense that we would continue to see Gold offer a nice longer-term trade. For shorter-term traders, I think that the $1220 level underneath is massive support. I think bounces from that level could be a nice short-term buying opportunities, but if we were to break down below the $1220 level, then I think the next level to watch as the $1210 level from a short-term perspective.
Ultimately, Gold it tends to move inversely from the greenback, so pay attention to the EUR/USD pair or the US Dollar Index which can give you an idea as to what we should see here. I think we are simply waiting to see what happens in the currency markets to decide what we’re going to do it in the gold market.
This article was originally posted on FX Empire
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